Kotler09_basic.ppt 155KB Aug 31 2008 08:53:00 PM

MARKETING MANAGEMENT
12th edition
9
Creating
Brand Equity

Kotler

Keller

Chapter Questions
What is a brand and how does branding
work?
 What is brand equity?
 How is brand equity built, measured, and
managed?
 What are the important decisions in
developing a branding strategy?


9-2

Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.
9-3

Attributes of Strong Brands








Excels at delivering

desired benefits
Stays relevant
Priced to meet
perceptions of value
Positioned properly
Communicates
consistent brand
messages










Well-designed brand
hierarchy

Uses multiple marketing
activities
Understands consumerbrand relationship
Supported by organization
Monitors sources of brand
equity

9-4

The Role of Brands






Identify the maker
Simplify product
handling
Organize accounting

Offer legal protection








Signify quality
Create barriers to
entry
Serve as a
competitive
advantage
Secure price premium

9-5

Branding

Endowing products and services
with the power of a brand.

9-6

Brand Equity

The differential effect that brand
knowledge has on consumer
response to the
marketing of that brand.

9-7

Brand Associations
Strong
 Unique
 Favorable


9-8

Marketing Advantages of Strong Brands









Improved perceptions of
product performance
Greater loyalty
Less vulnerable to
competition
Less vulnerable to crises
Larger margins

Inelastic consumer
response to price increases









Elastic consumer
response to price
decreases
Greater trade cooperation
Increase in effectiveness
of IMC
Licensing opportunities
Brand extension
opportunities

9-9

Brand Promise
The marketer’s vision of what
the brand must be and do for
Consumers.

9-10

Brand Equity Models


Brand Asset Valuator
 Aaker Model
 BRANDZ
 Brand Resonance

9-11

Drivers of Brand Equity
Brand elements
 Marketing activities
 Meaning transference


9-12

Brand Elements




Brand names
Slogans
Characters





URLs
Logos
Symbols

9-13

Brand Element Choice Criteria




Memorable
Meaningful
Likeability





Transferable
Adaptable
Protectible

9-14

Slogans









Like a good neighbor,
State Farm is there
Just do it
Nothing runs like a
Deere
Help is just around the
corner
Save 15% or more in 15
minutes or less










We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
Innovation at work
This Bud’s for you
Always low prices
9-15

Measuring Brand Equity
Brand audits
 Brand tracking
 Brand valuation


9-16

Interbrand’s Brand Equity
Formula









Brand earnings
Brand sales
Costs of sales
Marketing costs
Overhead expenses
Remuneration of
capital charge
Taxation










Brand strength
Leadership (25%)
Stability (15%)
Market (10%)
Geographic spread (25%)
Trend (10%)
Support (10%)
Protection (5%)

9-17

Managing Brand Equity
Brand reinforcement
 Brand revitalization
 Brand crises


9-18

Devising a Branding Strategy
Develop new brand elements
 Apply existing brand elements
 Use a combination of old and new


9-19

Branding Terms







Brand line
Brand mix
Brand extension
Sub-brand
Parent brand
Family brand








Line extension
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio

9-20

Brand Naming
Individual names
 Blanket family names
 Separate family names
 Corporate name/individual name combo


9-21

Brand Roles in a Brand Portfolio
Flankers
 Cash cows
 Low-end entry-level
 High-end prestige


9-22